Hong Kong’s Unemployment Rate Rises to 4.1%

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January 20, 2009 - Hong Kong’s seasonally adjusted unemployment rate grew from 3.8% in September – November 2008 to a provisional 4.1% in October – December 2008, according to the latest labor force statistics released January 19 by the Census and Statistics Department of the Hong Kong Special Administrative Region Government.

The increases in the unemployment rate (not seasonally adjusted) were mainly observed in the decoration and maintenance, restaurants, import/export trades, transport and manufacturing sectors.

The territory’s underemployment rate increased from 1.8% to provisional 1.9% over the same period Increases were mainly seen in the construction, amusement and recreational services, and transport sectors.

Total employment increased by around 11,200, from 3,533,100 in September - November 2008 to a provisional 3,544,300 in October - December 2008. Over the same period, the labor force increased by around 16,200, from 3,669,500 to an all-time provisional high of 3,685,700.

The number of unemployed persons (not seasonally adjusted) increased by around 4,900, from 136,400 in September - November 2008 to a provisional 141,300 in October - December 2008. Over the same period, the number of underemployed persons increased by around 4,700, from 65,100 to a provisional 69,800.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung, noted that the rising trend in unemployment reflected the impact of the financial tsunami which hit last September.

“With a tough external economic environment and a slackened local employment market, the unemployment rate will continue to come under pressure in the coming months,” he said.

“The Government’s top priority now is to support enterprises and preserve employment so as to minimize company closures and lay-offs. We will enhance and advance public investment in order to create employment opportunities and facilitate Hong Kong's further economic development,” Mr. Cheung stressed.

“We will press ahead with the 10 Major Infrastructure Projects and expedite the implementation of other minor works. In the next financial year, the Government will spend more than HK$29 billion (US$3.71 billion) in works projects, creating some 45,300 jobs. Through expediting the recruitment of civil servants and creation of temporary jobs, over 11,000 job opportunities will also be made available,” he added.

Mr. Cheung pointed out that it was the normal practice for employers to review and, if necessary, adjust their staffing position after the Lunar New Year holidays.

“I sincerely call on employers to seriously explore measures other than staff redundancy to weather the financial tsunami. A committed workforce is an invaluable asset and lay-offs should not be contemplated lightly.

“The Government will closely monitor the employment situation and continue to enhance its employment services on all fronts, especially in netting suitable vacancies from the market, to assist job-seekers,” he added.